An Analysis of Foreign Direct Investment in Indian Retail Sector

Abstract

The Indian retail industry is one of the important sectors with huge growth potential. According to the Investment Commission of India, the retail sector is expected to grow almost three times its current levels to $870 billion by 2019. The last decade has seen the entry of a no. of organized retailers for opening stores in various modern formats in metros and other important cities. But still, the overall share of organized retailing in total retail business has remained low in the present scenario. The grocery retail is the largest contributor to the total grocery retailing in India. But, more than that, it is one of the major employment provider accounting for 10 % of the total employment in the country. This became a major area of concern for the Indian government while deciding over the opening of FDI gates for India. This paper is organized into four main sections – FDI in Indian Retail, Prospects of FDI in Retailing, Advantages & Disadvantages of FDI and SWOT Analysis of FDI ” in the Indian retail sector.